Standard Life results boost hopes for pension providers

Standard Life has delivered a boost to the UK insurance sector after its life
and pension sales jumped 30pc during the first quarter of the year.

By Jamie Dunkley

6:00AM BST 30 Apr 2010

Shares in the Edinburgh-based company closed up 4 at 201.3p yesterday as analysts predicted the upbeat trading statement would be replicated across the industry.

Standard Life

The company said life and pensions sales hit £4.6bn during the three months ending March, up from £3.6bn during the same period last year. Analysts had expected long-term savings sales of about £3.7bn

David Nish, chief executive, said he had made progress reshaping the company since taking the helm at the beginning of the year. The insurer appointed Jackie Hunt as its finance director earlier this week.

"Standard Life has made a strong start to 2010, with increased net inflows and a continued growth in assets. These results underline our belief that the UK market is a great place to do business.

"My executive team is established and we are progressing well in changing how we operate, making Standard Life more nimble and quicker to respond to our customer growth opportunities."

Unlike rivals such as Prudential and Aviva, Standard Life has pinned its hopes primarily on the UK market. This accounts for about three-quarters of the group's sales, dwarfing its overseas business such as Canada and Asia.

The company's UK figures were boosted by sales of self-invested personal pensions (SIPPs) which rose 22pc, and UK corporate pension schemes, up 21pc.

In the corporate arena, the company said it had been hit by lower salary increases and recruitment levels, but insisted its saw a "strong" pipeline, with recent wins including the 5,000 member pension scheme of software firm Logica.